Reconciling a marketplace settlement means proving that the money in your bank equals what you sold, minus everything the platform kept. Here is a repeatable method.
Step 1: Collect three documents
The settlement or payment report from the marketplace for the period.
The bank statement showing the credit.
Your sales and returns data for the same period.
Step 2: Understand the settlement formula
Net payout = sales value - returns - commission and fees - shipping and fulfilment charges - tax collected at source (TCS) +/- adjustments.
Step 3: Record it in the books
Sales at gross value with GST.
Returns as credit notes against the original sale.
Commission and fees as marketplace expenses, with GST input where eligible.
TCS as a credit to claim in your return.
Bank receipt for the net amount, matched against the sales ledger of that marketplace.
Step 4: Find the difference
If the bank credit does not match, the usual causes are returns booked in a later period, a fee that was not recorded, reserve or hold amounts, and rounding. Work down the list, order by order.
Step 5: Close the loop
Mark orders as settled, keep unsettled orders in an outstanding list and follow up with the platform for anything older than your agreed window.
Where software helps
Bank statement OCR import removes retyping of credits, and ledger reports show the marketplace balance at any date. In HisabKitab you can import bank statements with OCR (the Advance plan includes 1,000 pages), use the marketplace connector for Amazon, Flipkart and Meesho, and review the outstanding ledger for each platform. Book a demo to see marketplace reconciliation on your own data.
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